Welle - Bioindustrial Partnership of Minnesota

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Presentation by Tim Welle of the BioBusiness Alliance of Minnesota at the July 20, 2011 meeting of the MN Chemical Regulation and Policy Project Work Group.

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Welle - Bioindustrial Partnership of Minnesota

  1. 1. BioIndustrial Partnership of MinnesotaEnvironmental Initiative Chemicals Regulation Working Group July 20, 2011
  2. 2. Project Sponsors Enriching Minnesota’s Future through the Biosciences
  3. 3. Agenda•  Introduction•  Project Overview•  Biorefinery Development•  Agriculture-based opportunities•  Downstream market Development Enriching Minnesota’s Future through the Biosciences
  4. 4. The BioBusiness Alliance of Minnesota•  Industry led, non-profit organization•  Partners with industry, academia and economic development groups to stimulate growth in Minnesota•  Supports growth in six targeted industries Medical Devices Food Biologics/Biopharma Renewable Energy Animal Health Renewable Materials Enriching Minnesota’s Future through the Biosciences
  5. 5. Project Partners•  Great Plains Institute •  LifeScience Alley Non-partisan, non- Largest state-based profit corporation based trade association in Minneapolis focused on serving the life sciences industry. Mission: to accelerate the transition to a sustainable, prosperous, low-carbon economy. Enriching Minnesota’s Future through the Biosciences
  6. 6. Renewable Materials Value Chain Overview Biorefinery Farmers/Foresters DevelopmentChemicals Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
  7. 7. D2025 Recommendations Renewable Materials •  Support market development efforts for the renewable materials value chain » Renewable Materials Summit: Emerging Markets in the Upper Midwest •  Position Minnesota as a world leader in biorefinery operations Liquid Fuels MarketsFarmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
  8. 8. Project Description
  9. 9. The BioIndustrial Partnership of MN•  Hypothesis: The industry is commercializing technologies, and there are enough companies forming that any MN biorefinery could find a partner to enter the industry.•  Expected Implementation Actions: » Education of business and community leaders. » Identify assets and market MN to external partners. » Policy development. •  Regulatory issues. •  Financial assistance. Enriching Minnesota’s Future through the Biosciences
  10. 10. Project Methodology•  Q2 2011: Project Definition » Assemble Core Team and develop clear understanding of industry•  Q3 2011: Community Dialogue » Share global trends and gather information•  Q4 2011: Publication » Minnesota Roadmap for BioIndustrial Development•  2012: Education and Implementation » Act on strategic direction Enriching Minnesota’s Future through the Biosciences
  11. 11. Core Team•  ~21 Members across value chain » Biochemical companies » Ethanol General Managers » Engineering/Design Firms » Legal and Financial Service Providers » Government•  Industry Dominated Enriching Minnesota’s Future through the Biosciences
  12. 12. Building an industry… $ $Feedstock Technology Off-take Policy Enriching Minnesota’s Future through the Biosciences
  13. 13. Roadmap Preview
  14. 14. Roadmap Outline•  Biorefinery Development •  Trends •  Opportunities Biorefinery •  Strategic Direction•  Downstream Market Development »  Chemicals »  Fuels Chemicals Industry- End Product •  Trends Retail, End Uses Formulators Manufacturing •  Opportunities •  Strategic Direction•  Agricultural-based Supply Chain Partnerships •  Trends •  Opportunities Farmers/Foresters Biorefinery •  Strategic Direction•  Forest-based Supply Chain Partnerships •  Trends •  Opportunities Farmers/Foresters Biorefinery •  Strategic Direction•  Policy Analysis and Recommendations
  15. 15. Biorefinery Development Liquid Fuels MarketsFarmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
  16. 16. Integrated Biorefinery •  DDGs Food/Feed •  Nutraceuticals •  Food grade oil •  Ethanol Fuels •  Butanol •  Drop-in fuels Chemicals •  Materials and •  Additives Plastics •  Solvents
  17. 17. Example: Bio Iso-butanol •  Iso-butanol Drop-in •  Jet Fuel Fuels •  Diesel •  Gasoline Chemicals and •  C4 Platform Plastics Enriching Minnesota’s Future through the Biosciences
  18. 18. Volatile and increasing fossil fuel pricesSource: ICIS;http://www.icis.com/Articles/2011/06/27/9471601/Bio-based-intermediates-will-reduce-price-volatility.html
  19. 19. The signals of momentum? •  8 IPO’s in the last year2 » Financial markets are supporting the industry •  Green chemistry sector lead MN in VC investments for Q2 2011 •  Global biochemicals industry: $585 billion by 20301 » Up to 17% of global chemicals market » 5-10% average annual growth •  5 billion pounds of chemicals by ~20153 •  RFS2: 22 billion gallons of advanced biofuels by 20221 http://www.icis.com/Articles/2010/06/21/9368973/biochemical-market-forecasts-suggest-strong-growth.html2 http://biofuelsdigest.com/bdigest/2011/06/03/myriants-125m-ipo-the-complete-digest-analysis/3 PiperJaffray Analysis
  20. 20. New targets for bio-based chemicals•  Innovation is enabling new commodity chemicals » New to the world chemicals •  Segetis’ Javelin Technology •  Reluceo’s XLK Polymer » Improved access to existing chemicals •  Succinic Acid •  Glucaric Acid•  “New” chemicals can depend on other innovations in the final products » Risk for slower growth » Without significant improvement in functionality, they may not have the critical mass to survive
  21. 21. Minnesota Biobased Materials Family Tree Rivertop BioAmber Reluceo XL Terra2009 - 2011 Renewables Est. 2009 Est. 2009 Est. 2009 Est. 2010 Plymouth Golden Valley Golden Valley Green Harvest Draths Segetis Pine River Gevo Technologies2005 - 2009 Est. 2005, 20 emp. Est. 2006, 30 emp. Petrochemicals Est. 2009, 50 emp. Est. 2007, 1 emp. Okemos, Michigan Golden Valley Est. ~2009. Luverne, MN and CO Bloomington Cargill BioH Natureworks Elevance Cargill1997 - 2004 Est. 2003, 35 emp. est. 1997, ~100 emp. Est. 2004, 45 emp. Industrial Oils Plymouth Minnetonka Chicago, IL Minnetonka Cargill Resins1980s - 1990s Minnetonka Currently not located in Minnesota
  22. 22. Opportunities and Concerns•  Opportunities » Intermediate chemicals the key targets » MN Strengths to build on: •  Cluster of companies has developed in the state •  Use the medical device industry as a proxy •  Strong suite of service providers that understand and support the industry•  Concerns » MN lacks experienced chemical industry executives » Scale-up capital and speed » Cost of regulatory compliance and toxicity testing can squelch innovation
  23. 23. Strategic Needs- BioIndustrial Manufacturing•  Assistance in financing through “valley of death” » Government grants are difficult » Lack of focused venture capital » Other states are moving more aggressively to support the industry•  Regulatory issues•  University policies to encourage faculty start-ups•  More clean-tech incubators in the state
  24. 24. Agriculture Opportunities Liquid Fuels MarketsFarmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
  25. 25. Agricultural-based Supply Chain•  Biorefinery Development •  Trends •  Opportunities •  Strategic Direction•  Downstream Market Development »  Chemicals »  Fuels •  Trends •  Opportunities •  Strategic Direction•  Agricultural-based Supply Chain Partnerships •  Trends •  Opportunities Farmers/Foresters Biorefinery •  Strategic Direction•  Forest-based Supply Chain Partnerships •  Trends •  Opportunities •  Strategic Direction Enriching Minnesota’s Future through the Biosciences•  Policy Analysis and Recommendations
  26. 26. Agriculture Biorefineries
  27. 27. End Market Development Liquid Fuels MarketsFarmers/Foresters Biorefinery Chemical Industry- End Product Retail, End Uses Formulators Manufacturing Enriching Minnesota’s Future through the Biosciences
  28. 28. Downstream Market Development•  Biorefinery Development •  Trends •  Opportunities •  Strategic Direction•  Downstream Market Development »  Chemicals Liquid Fuels »  Fuels Markets •  Trends •  Opportunities Chemicals Industry- End Product Strategic Direction Retail, End Uses •  Formulators Manufacturing•  Agricultural-based Supply Chain Partnerships •  Trends •  Opportunities •  Strategic Direction•  Forest-based Supply Chain Partnerships •  Trends •  Opportunities •  Strategic Direction Enriching Minnesota’s Future through the Biosciences•  Policy Analysis and Recommendations
  29. 29. Proposal for coordination•  Targeted discussions on regulatory impacts•  Perspectives and ideas to grow the industry•  Participate in implementation efforts Enriching Minnesota’s Future through the Biosciences
  30. 30. Thank You! Tim Welletwelle@biobusinessalliance.org 952-746-3845
  31. 31. Biofuels becoming biochemicals companies. •  Replace the entire barrel of oilSource: Peter Keeling. Center For Biorenewable Chemicals

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